State Aid Law Blog

State Aid Uncovered Blog

In Lexxion’s State Aid Uncovered blog, Prof. Phedon Nicolaides publishes weekly critical analyses of recent State aid judgments and decisions. Each post presents the key points of a court judgment or EU Commission decision, places it in the context of similar case law or practice, assesses the underlying reasoning and highlights any inconsistencies or contradictions.

Guest contributions from other State aid experts will also be published on the blog at irregular intervals to complement the content of the blog posts.

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20. June 2017  |   State Aid Uncovered by Phedon Nicolaides

The Effectiveness of Clear Guidance: The Case of Broadband Networks
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This blog examines how much aid goes to support broadband networks and what lessons can be drawn from the Commission’s decisional practice.   Introduction A principal objective of the State Aid Modernisation was to free Commission resources from the time-consuming task of checking the conformity of routine measures of State aid. Consequently, the General Block Exemption Regulation was extended to […]
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14. June 2017  |   Guest State Aid Blog by Nevin Alija

State Resources criteria in the spotlight once again: Comments on the Opinion of the Advocate General in case C-329/15 ENEA SA w Poznaniu v Prezes Urzędu Regulacji Energetyki
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Today we are glad to welcome Nevin Alija to the State Aid Blog. She is a PhD Candidate at the Católica Research Center for the Future of Law of the Católica Global School of Law, Universidade Católica Portuguesa. In this blog post she examines case C-329/15 ENEA SA w Poznaniu v Prezes Urzędu Regulacji Energetyki. Thank you, Nevin, for sharing […]
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13. June 2017  |   State Aid Uncovered by Phedon Nicolaides

A Regional Aid Scheme with an Ex-Post Evaluation Plan
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Aid must be capable of remedying the regional handicap.   Introduction A novel aspect of the 2014 State Aid Modernisation was the requirement for ex-post evaluation of large or unusual State aid measures. The purpose of the ex-post evaluation is to determine the effectiveness of State aid. The outcome of the evaluation does not affect the legality of the aid. […]
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6. June 2017  |   State Aid Uncovered by Phedon Nicolaides

Transfer of State Assets between State-Owned Companies
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Transfers of public assets for the purpose of extinguishing debt have to be valued according to private creditor principle. Transfers of public assets that involve State aid must be notified to the Commission.   Introduction Sale or transfer of state assets is a tricky process. A possible undervaluation of the assets results in State aid for the benefit of the […]
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30. May 2017  |   Guest State Aid Blog by Lexxion Publisher

15th Jubilee Feature – State Aid Experts Paying Court to EStAL: Thomas Jaeger
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Since 2002 Lexxion Publisher’s European State Aid Law Quarterly – EStAL serves as a forum for dialogue and deliberation on all issues related to State aid. On the occasion of our 15th anniversary special feature we have gathered our State aid family to reflect upon their joint journey together with our precious EStAL and of course our favourite topic State […]
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29. May 2017  |   State Aid Uncovered by Phedon Nicolaides

The Art, Science and Law of Funding Services of General Economic Interest
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The compulsory nature of an assigned public mission makes the services covered by the mission different from those provided by market operators for profit.   Introduction The justification of government intervention for the purpose of ensuring delivery of adequate services of general economic interest [SGEI] and the design of measures that compensate providers of SGEI can be very tricky. This […]
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23. May 2017  |   State Aid Uncovered by Phedon Nicolaides

What Costs Are Charged by Public Authorities when they Act as Market Operators?
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Fees charged by operators to users of infrastructure must cover all relevant costs. The relevant costs are those which are causally linked to the agreements between users and operators. Introduction The rules in the Treaty on the Functioning of the European Union are neutral in their treatment of private or state-owned companies [Article 345 TFEU]. This means that companies cannot […]
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16. May 2017  |   State Aid Uncovered by Phedon Nicolaides

Regional Investment Aid and Sale of Land
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A company that applies for State aid is considered to acquire a right to that aid when assurances it has received from the granting authority can be enforced in court. The price of land can be reduced by the cost that a new owner would expend to make the land usable.   Introduction In decision SA.40448, the Commission assessed aid […]
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9. May 2017  |   State Aid Uncovered by Phedon Nicolaides

Bank Resolution Has to Comply with State Aid Rules as well as the Banking Recovery and Resolution Directive
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Insurance funds contributed by banks become state resources if they are managed by public agencies. Sale of non-performing loans at market prices does not involve State aid.   Introduction Since 1 January 2016, the resolution financial institutions in Europe has been subject to stricter rules. The institutions which are established in the Eurozone fall with the jurisdiction of the Single […]
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3. May 2017  |   State Aid Uncovered by Phedon Nicolaides

Identification of the Reference Tax System: The Case of a Tax on Advertising Turnover
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Turnover taxes should be levied at a single rate. Introduction This is the fourth case involving turnover taxes that have been declared to be incompatible with the internal market [see Commission decision 2017/329].[1] A brief summary was published here on 13 December 2016 [http://stateaidhub.eu/blogs/stateaiduncovered/post/7697]. The reasoning of the Commission follows closely that of the other cases. However, what makes this case […]
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20. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Non-State Aid Assistance to Depositors and Customers of Banks
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Public assistance to borrowers who cannot repay their loans does not constitute State aid if the beneficiaries are individuals. Public assistance to undertakings which cannot repay their loans does not constitute State aid if the amount of aid does not exceed the de minimis threshold. Any public funding of deposits which are transferred from ailing to healthy banks is not […]
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13. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Burden-Sharing and State Aid to Banks
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Creditors must contribute to the recovery of banks before State aid is granted. Burden-sharing by creditors in the recovery of banks does not deprive them of their right to property.   Introduction On 19 July 2016, the Court of Justice rendered its judgment in case C‑526/14, Tadej Kotnik and others v Državni zbor Republike Slovenije.[1] The judgment was in response to a […]
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6. September 2016  |   State Aid Uncovered by Phedon Nicolaides

Commission Notice on the Notion of State Aid: Part III – Trade Effect, Distortion of Competition and Infrastructure
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This is the third and last article in a series of three that reviews the Commission’s Notice on the Notion of State Aid.* Last week’s article analysed the concepts of advantage and selectivity. This week the focus is on the last two constituent elements of the notion of State aid: affectation of cross-border trade and distortion of competition. This article […]
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30. August 2016  |   State Aid Uncovered by Phedon Nicolaides

Commission Notice on the Notion of State Aid: Part II – Advantage and Selectivity
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This is the second article in a series of three that reviews the Commission’s Notice on the Notion of State Aid.* Last week’s article focused on the concepts of economic activity and state resources.** Next week’s article will conclude with a presentation of the conditions under which trade is affected and competition distorted and an analysis of the application of […]
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23. August 2016  |   State Aid Uncovered by Phedon Nicolaides

Commission Notice on the Notion of State Aid: Part I – Economic Activities & State Resources
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The Notice provides a thorough review of the case law and the decisional practice of the Commission.   Introduction After more than two years of deliberations, the Commission Notice on the Notion of State Aid was published in the Official Journal on 19 July 2016.[1] The Notice presents “the Commission’s understanding of Article 107(1) of the Treaty, as interpreted by the […]
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16. August 2016  |   State Aid Uncovered by Phedon Nicolaides

Compliance with Regulation 651/2014: The Consequences of Failure to Publish an Aid Measure*
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Member States must publish the aid measures they adopt on the basis of the GBER. Failure to publish prevents them from being exempted from notification and renders any aid illegal.   Introduction On 21 July 2016, the Court of Justice delivered a judgment in response to a request for a preliminary ruling in case C-493/14, Dilly’s Wellnesshotel v Finanzamt Linz.[1] An […]
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4. August 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: What can I do if my measure contains State aid?
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What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us!   After Phedon Nicolaides has given us examples of “good aid”, today he answers the question “What can I do if my measure contains State aid?”. View the […]
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2. August 2016  |   State Aid Uncovered by Phedon Nicolaides

State Aid Rules and Transfer Pricing
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Tax rulings on transfer pricing have to approximate market-based outcomes.   Introduction Twenty years ago, the European Commission initiated discussion on how State aid rules could apply to direct taxation. In 1998 it adopted its Notice on direct business taxation. At about the same time the Commission launched several formal investigations which culminated in negative decisions. In 2013 and 2014, […]
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28. July 2016  |   State Aid Uncovered by Lexxion Publisher

New Video: If you want to learn more about State aid issues…
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What is State aid? Why do I need to be concerned about State aid? These and many more basic questions will be answered in our videos on YouTube. Make sure to visit us!   7 weeks ago we started our new State aid journey on YouTube and thank you for viewing our videos, commenting and subscribing to our channel! Today […]
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26. July 2016  |   State Aid Uncovered by Phedon Nicolaides

Compatible State Aid May Have Negative Effects on some Market Operators
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The existence of market failure is not necessary for aid to be declared compatible under Article 107(3). Market failure does not mean that the market is completely unable to supply a good or service. State aid aiming to remedy market failure may be compatible with the internal market even if it has a negative impact on some market operators.   […]
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